Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Equinix ( EQIX) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Equinix as such a stock due to the following factors:
- EQIX has 13x the normal benchmarked social activity for this time of the day compared to its average of 2.07 mentions/day.
- EQIX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $165.7 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend. EXCLUSIVE OFFER: Get the inside scoop on opportunities in EQIX with the Ticky from Trade-Ideas. See the FREE profile for EQIX NOW at Trade-Ideas More details on EQIX: Equinix, Inc. provides data center services to protect and connect the information assets for the enterprises, financial services companies, and content and network providers primarily in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. EQIX has a PE ratio of 110.9. Currently there are 12 analysts that rate Equinix a buy, no analysts rate it a sell, and 2 rate it a hold. The average volume for Equinix has been 884,000 shares per day over the past 30 days. Equinix has a market cap of $9.7 billion and is part of the technology sector and internet industry. The stock has a beta of 0.88 and a short float of 20.6% with 11.47 days to cover. Shares are up 9.3% year-to-date as of the close of trading on Wednesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Equinix as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, good cash flow from operations, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 57.5% when compared to the same quarter one year prior, rising from $26.97 million to $42.47 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 16.5%. Since the same quarter one year prior, revenues rose by 12.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has significantly increased by 102.21% to $206.56 million when compared to the same quarter last year. In addition, EQUINIX INC has also vastly surpassed the industry average cash flow growth rate of 12.09%.
- The gross profit margin for EQUINIX INC is rather high; currently it is at 50.48%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, EQIX's net profit margin of 7.82% significantly trails the industry average.
- EQUINIX INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, EQUINIX INC increased its bottom line by earning $2.56 versus $1.71 in the prior year. For the next year, the market is expecting a contraction of 36.7% in earnings ($1.62 versus $2.56).
- You can view the full Equinix Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.